TD's Schwab Investment to Contribute C$194 Million in Bank's 2Q

By Adriano Marchese

Toronto-Dominion Bank said Tuesday that it expects a lower contribution to its second fiscal quarter results from its investment in Charles Schwab.

The Canadian financial institution said that it expects Schwab's earnings for the first quarter of fiscal 2024--which ends in October--to translate into about 194 million Canadian dollars, or about $140.7 million, of reported equity in net income of an investment for TD's second quarter of fiscal 2024.

Last year at this time, Schwab reported a contribution of C$241 million.

TD received a roughly 13.5% stake in Schwab as part of Schwab's acquisition of TD Ameritrade.

On an adjusted basis--which excludes acquisition-related charges of approximately C$5 million after-tax and amortization of acquired intangibles of approximately C$30 million after-tax--net income of an investment will be approximately C$229 million.

TD said it expects to release its first-quarter financial results on May 23.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 16, 2024 07:12 ET (11:12 GMT)

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